Credit Suisse Global Oil Daily (HAL, REP, HP, NE, APA)

Credit Suisse is out with a research report this morning, focusing on the oil industry. In the report, Credit Suisse chose Halliburton HAL as its 2011 Top Pick in the Oil Field Service sector, and reviewed Repsol REP, Helmerich & Payne HP, and Noble NE, Apache APA. In the report, Credit Suisse maintained its Repsol Outperform rating and raised Helmerich's price target to $57 from $50. Regarding Noble, Credit Suisse states, "While full-year 2011 cost guidance was worse than expected, we were encouraged by management's commentary on several operating issues that have plagued the stock in recent quarters, including Mexico, the Bully Rig shipyard projects, and the fate of the Brazilian drillships. We continue to see a favorable asymmetric risk-reward in the shares as these concerns appear largely discounted in the current valuation. Meanwhile, any potential favorable news flow, including a normalization in Mexican jackup activity in the back half of 2011, should disproportionately help NE relative to its peers." Regarding Apache and Egypt riots, Credit Suisses notes, "APA has been in Egypt for over 20 years and has an excellent relationship with the host government. This has been a very profitable business for APA and currently represents 21% of production and 20% of our gross asset value estimate. That equates to $27 per share and APA has lost $7 since the Egypt situation started."